Old Mill Updates

COVID-19: Practical guidance for our rural and farming clients #30

In this week’s rural update we discuss:

  • New lockdown, new business grants
  • Principle Private Residence relief and working from home
  • Stamp Duty Land Tax – reminder
  • New income tax checker for ‘casual’ income
  • 2020-21 tax year end planning
  • Key financial dates for farmers in 2021

If you have any questions about any of the topics we discuss in this update or relating to your own business please do get in touch with your Old Mill adviser in the first instance, or alternatively click here

13th January 2021


New lockdown, new business grants

Thankfully, farming businesses have been relatively less affected compared to those in other industries but we’re still receiving calls from clients regarding eligibility for any grants, particularly from those who have a diversification within the hospitality sector.

As we enter what is effectively the toughest lockdown since last March, the Government has announced an additional £4.6 billion fiscal stimulus to support businesses and protect jobs through this next phase of the coronavirus pandemic.

This support includes:

  • Additional grants for businesses in retail, hospitality and leisure
  • Business rate relief and furlough scheme extended until the end of April
  • £594 million made available to affected businesses outside retail, hospitality and leisure sectors
  • One-off top up grants to businesses forced to close.

Find out the full details, along with previously announced support measures here.


Principle Private Residence relief and working from home

There has been a significant increase in people working from home over the last year and, if part of your home is used exclusively as an office space for business use, there is potential for Principle Private Residence (PPR) relief to be restricted.

To prevent such a restriction arising under this rule, there should be some occupation of the room for personal purposes, perhaps as a reading or TV room in the evening.

If you want to discuss this further, please contact your Old Mill adviser or our tax team.


Stamp Duty Land Tax - reminder

A quick reminder that the Stamp Duty Land Tax (SDLT) holiday will come to an end on 31 March 2021 and it will be important for purchasers of residential property to ensure that they complete prior to this date to benefit from the £500,000 0% band.

With effect from 1 April 2021, a SDLT surcharge of 2% will come into force for non-residents purchasing UK property. This will apply in addition to the 3% surcharge imposed on individuals who already own another UK dwelling.

For further advice speak to your Old Mill adviser or our SDLT specialist Laura Wylie.


New income tax checker for ‘casual’ income

The question of what needs to be included in an individual tax return comes up regularly when speaking with our clients. HMRC have a new interactive tool for individuals to check whether they need to declare, or possibly pay tax on any ‘casual’ income.

This income tax checker explains whether you need to pay and what you need to do if you receive non-PAYE income from:

  • selling things, for example at car boot sales, auctions or online
  • doing casual jobs such as gardening, food delivery or babysitting
  • charging other people for using your equipment or tools
  • renting out property or part of your home, including for holidays (for example, through an agency or online)

You can access the income tax checker here.  And, of course, your Old Mill adviser can also answer these questions for you.


2020-21 tax year end planning

Before the end of the 2020-21 tax year finishing on 5 April 2021 we advise you review the following tax allowances and available tax reliefs.

  1. Claim Marriage Allowance
  2. Make Gift Aid donations
  3. Make personal pension contributions
  4. Utilise annual gift exemptions for Inheritance Tax
  5. Make use of ISA allowances for you and your family.

The full article and an explanation of each point can be found here.  If you don’t already use a financial planner at Old Mill, Stuart Coombe and Julia Banwell are rural specialists who work with clients to manage their personal finances.  Please feel free to give them a call.


Key financial dates for farmers in 2021
  1. 31 January 2021 – submission of Self-Assessment tax returns (online)
  2. 31 January 2021 – payment of Income Tax and National Insurance contributions
  3. 3 March 2021 – Spring budget
  4. Spring 2021 – repayment of Bounce Back Loan Scheme (BBLS) loans
  5. 31 March 2021 – deferred VAT payments
  6. Quarter Days – rent payments
  7. 31 March 2021 – end of Stamp Duty Land Tax holiday
  8. 31 May 2021 – Countryside Productivity Small Grant claims
  9. 31 July – payment of Income Tax and National Insurance contributions
  10. December 2021 – Basic Payment Scheme income (reduced)

Find the full article here.

If you have any questions about any of the above please do get in touch with your adviser in the first instance, or alternatively click here